Brazilian high-grade iron ore (65% Fe) is now priced at $119/mt, down from $122/mt last week and the prior week, CFR China.
According to analysts, the decline ultimately reflects weak data unveiled by the manufacturing industry in China, in part compensated by the last iron ore acquisitions before the weeklong holidays period in the country.
The export price of blast furnace grade pellets is now $138/mt, against $141/mt last week, CFR China, reflecting the same premium relative to equivalent sinter feed fines.
The premium for Brazilian high-grade ore, containing 65 percent iron, relative to Australian 62 percent iron ore, based on their iron units, is now 10.2 percent, from 10.1 percent previously, maintaining a high premium in historical terms, reflecting the interest of steel producers for the high performance of premium products when processed in blast furnaces.
In the Brazilian domestic market, reference prices are now $91/mt for the ore and $110/mt for pellets, against respectively $95/mt and $114/mt previously, ex-works and excluding taxes.
Domestic pricing was also affected by variation of Brazil-China freight rates, as the domestic price is based on FOB conditions, having CFR China as the reference.
In August, Brazil exported a total of 40.21 million mt of iron ore and pellets. A decrease in shipments during the fourth week of September indicates that the total export volume for the month may be lower than that of August.
